Legal Perspective on Strategic Alliances
In the article “The Strategic Alliance”, http://www.ivanhoffman.com/strategic.html, by Ivan Hoffman, B.A., J.D., he indicates there is no legal relationship called a “strategic alliance”. In forming such it’s up to the parties to define the legalities of their relationship by contract. The terms of the agreement must cover the specifics of the respective rights and obligations of the partners within that relationship.
Ivan’s list of provisions that must be spelled out in order to give “strategic alliance” a legal meaning include the following:
1 – The nature of the relationship. Is it a partnership or joint venture, but for limited purpose. He sets out the details in depth in his article, http://www.ivanhoffman.com/strategic.html.
2 – The term of the relationship.
3 – Participation rights. Who’s entitled to what and when.
Obviously if you’re considering a strategic alliance it definitely must be delineated in writing and agreed to by all parties. And get the advice of your legal counsel regarding your specific situation.
